(This entry was originally posted on Tuesday, February 24th, 2009)
Laptop maker Hewlett-Packard (HP) has finally started to feel the heat of global economic recession as they experienced 9.5 percent drop in sales in the first quarter of the current year. HP generated $1.9 billion revenue, drop from $2.1 billion profit of the same period of last year. $1.9 billion profit means 75 cents per share which was 80 cents per share a year round. HP expected $31.9 billion profit and 93 cents per share.
Now, HP is planning to cut salaries to adjust the drop in profit. I am not surprised to see HP taking such initiative to adjust their costs amid economic slowdown. The situation has been tougher day by day due to weak economy and there are several other companies who are facing the same problem too. What HP can do at this moment is that they can come up with cost-effective laptops and try to grab a market share in the mini notebook market.
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